What is Baby Bear? How to buy Index Baby Bear and Stock Baby Bear?
1. What is Baby Bear?
The essence of Baby Bear is a put option. The term option may sound complicated, but the core idea is simple. It can be understood as buying/selling a bearish "opportunity".
Imagine buying a Baby Bear if you think an index or stock will fall in the next month. In this way, as long as it does fall in a certain period of time in the future, the "opportunity" in your hand may rise sharply, and you will make a profit!
2. Index Baby Bear Buying Guidance (take QQQ as an example)
An index Baby Bear is a Baby Bear that returns when the index falls. For example, you are pessimistic about the Nasdaq index for a while, and choose to buy a QQQ Baby Bear and spend $1,000. The following week, QQQ really fell, and the Baby Bear in your hand may rise to $2,000, $5,000, or even $10,000! Just sell it and you make a profit.
On the contrary, if QQQ does not fall, then your Baby Bear may become worthless.
Corresponding to the RockFlow App is divided into the following four steps:
Step 1: Open the App, enter QQQ in the search box at the top of the homepage, click the first one to enter the following page:
Step 2: Click on the QQQ Bear Bear, enter the following page:
Step 3: Click "Pick" and filter your favorite Baby Bear according to different dimensions, such as profit probability, leverage multiple, trading volume and so on.
Step 4: After selecting a specific Baby Bear, click "Buy" below.
Tips:
Liquidity is king: When trading Baby Bear, it is best to choose with large trading volume and good liquidity. This way, it is easier to find buyers when you want to sell.
Close as you see fit: The price of the Baby Bear is very flexible and may rise and fall quickly in a short period of time. If you think you have made almost enough, you might as well sell it in time to lock in the profit.
3. Stocks Baby Bear Buying Guidance(taking Apple as an example)
If you think Apple's stock price will fall in the future, you can buy an Apple Baby Bear. As long as Apple stock does fall for a certain period of time in the future, the Baby Bear in your hand is likely to rise sharply.
For example, if you think that Apple's new product launch is not very successful, it may cause the stock price to fall. So you buy an Apple Baby Bear and spend $1,000. Sure enough, Apple's stock price fell, and your Apple Baby Bear may have risen to $3,000, $5,000. Sell it and you make a profit!
But if Apple's stock price doesn't fall, your Baby Bear may not be worth much.
Similar to the Index Baby Bear, Stocks Baby Bear is best to follow the principles of "liquidity is king" and "timely profit".
Finally, give you a reminder: Given that Baby Bear trading involves leverage, you can try to operate a small positioning, balance the benefits and risks.